Nissan Plans More Production In North America

Nissan Motor Co. Chief Executive Carlos Ghosn said on Monday that making cars in Japan is “uncompetitive” at current exchange rates and that his company plans to localize production to near 90% of its sales in North America.

“It’s uncompetitive even now at 77 yen” to the dollar, Mr. Ghosn said of Nissan’s Japan-based output, speaking to reporters at a roundtable during the North American International Auto Show in Detroit.

As a result, the Nissan CEO said nearly 90% of sales in North American would be made locally within two to three years, up from about 70% currently.

The yen has risen to record highs against the U.S. dollar and other currencies, making Japanese exports less price competitive in the U.S. and other markets and also eroding the yen value of dollar-denominated profits.

However, Mr. Ghosn said that Nissan would not close factories in Japan, but rather shift all production growth to plants outside of its home country.

Mr. Ghosn, who is also CEO of Renault SA, also said that Nissan is targeting 10% of both the U.S. and Chinese markets, up from 8.2% and 7.2% respectively in 2010.